FRIEDENS, Pa., Oct. 31,
2023 /CNW/ - Corsa Coal Corp. (TSXV: CSO) (OTCQX:
CRSXF) ("Corsa" or the "Company"), a premium quality metallurgical
coal producer, today reported financial results for the three and
nine months ended September 30, 2023. Corsa has filed
its unaudited condensed interim consolidated financial statements
for the three and nine months ended September 30, 2023 and
2022 and related management's discussion and analysis under its
profile on www.sedarplus.ca.
Unless otherwise noted, all dollar amounts in this news release
are expressed in United States
dollars and all ton amounts are short tons (2,000 pounds per
ton). Pricing and cost per ton information is expressed on a
free-on-board ("FOB"), mine site basis, unless otherwise noted.
Third Quarter Highlights
- Key financial results and operational statistics are shown
below:
|
|
For the three months
ended
|
|
For the nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
(in millions
except per share, per ton and sales tons)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net and comprehensive
income (loss)
|
$
19.4
|
|
$
(4.5)
|
|
$
29.4
|
|
$
(11.4)
|
|
Diluted earnings (loss)
per share
|
$
0.18
|
|
$
(0.04)
|
|
$
0.28
|
|
$
(0.11)
|
|
Cash provided by
operating activities
|
$
5.7
|
|
$
1.8
|
|
$
11.7
|
|
$
8.0
|
|
Total
revenue
|
|
$
51.1
|
|
$
45.9
|
|
$
154.3
|
|
$
127.0
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
|
|
Adjusted
EBITDA(1)
|
$
6.1
|
|
$
1.3
|
|
$
27.6
|
|
$
9.3
|
|
EBITDA(1)
|
|
$
26.4
|
|
$
(0.7)
|
|
$
45.4
|
|
$
(0.2)
|
|
|
|
|
|
|
|
|
|
|
Average realized price
per ton of metallurgical coal sold(1)
|
$
161.70
|
|
$
158.39
|
|
$
170.42
|
|
$
159.70
|
|
Cash production cost
per ton sold(1)
|
$
127.72
|
|
$
136.95
|
|
$
123.60
|
|
$
131.22
|
|
|
|
|
|
|
|
|
|
|
Company produced
metallurgical coal sales tons
|
269,197
|
|
230,260
|
|
778,955
|
|
635,800
|
|
Purchased metallurgical
coal sales tons
|
32,736
|
|
37,786
|
|
67,752
|
|
103,277
|
|
Total metallurgical
coal sales tons
|
301,933
|
|
268,046
|
|
846,707
|
|
739,077
|
|
(1)
|
This is a non-GAAP
financial measure. See "Non-GAAP Financial Measures"
below.
|
|
(2)
|
Similar to most U.S.
metallurgical coal producers, Corsa reports sales and costs per ton
on an FOB mine site basis and denominated in short tons. Many
international metallurgical coal producers report prices and costs
on a delivered-to-the-port basis (or "FOB vessel basis"), thereby
including freight costs between the mine and the port.
Additionally, Corsa reports sales and costs per short ton, which is
approximately 10% lower than a metric ton. For the purposes
of this figure, we have used an illustrative freight rate of
$45-$55 per short ton. Historically, freight rates are
attached to the coal market indices and will adjust as market
prices rise and fall. Further adjustments include a vessel
freight differential and quality adjustments necessary to evaluate
Corsa's price compared to Australian premium low volatile
metallurgical coal. As a note, most published indices for
metallurgical coal report prices on a delivered-to-the-port basis
denominated in metric tons.
|
Kevin M. Harrigan, President and
Chief Executive Officer of Corsa, commented, "The third quarter of
2023 included our highest metallurgical coal shipment volume since
the second quarter of 2020 and was a 13% increase over the same
quarter of 2022. Operationally, our surface mines performed well in
the quarter delivering improved production volumes and decreased
costs, but the impact was muted in our overall results due to
numerous challenges faced at our underground mines. The
underground mines suffered from adverse geological conditions, that
began in early August, and also a number of breakdowns which
reduced equipment availability thus resulting in lower than
expected coal production and increased mining costs during the
quarter. Our average sales price reflected increased exposure
to index prices and the impact of the lower price environment
experienced in the first half of the third quarter. As a
result of a 12% increase in cash production cost per ton sold and
lower realized prices, cash margins in the period were lower than
anticipated."
"Net income for the third quarter 2023 was primarily due to our
previously announced settlement with the Pennsylvania Department of
Transportation ("PennDOT") for damages resulting from certain
historical takings of leased land by PennDOT in 2010 and
2011. The settlement has significantly enhanced the Company's
liquidity and the settlement proceeds, which were received in
October 2023, were partially utilized
to prepay the amounts due in 2023 and 2024 under the Company's Main
Street credit facility. With this prepayment, the Company has
one further principal payment due in December 2025 under this facility."
"As we move through the fourth quarter, we are experiencing more
favorable mining conditions at each of our underground mines.
We continue to focus on improving coal production and lowering
costs in the fourth quarter and into 2024. Our enhanced
liquidity position allows for increased flexibility and optionality
in our sales strategy as we balance our book between domestic and
international customers with various pricing mechanisms."
Financial and Operations Summary
|
For the three months
ended
|
|
For the nine months
ended
|
|
September
30
|
|
September
30
|
|
|
|
|
|
Increase
|
|
|
|
|
|
Increase
|
|
(in
thousands)
|
2023
|
|
2022
|
|
(Decrease)
|
|
2023
|
|
2022
|
|
(Decrease)
|
|
Revenues
|
$
51,058
|
|
$
45,938
|
|
$
5,120
|
|
$ 154,312
|
|
$ 127,037
|
|
$
27,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales(2)
|
$
47,581
|
|
$
45,271
|
|
$
2,310
|
|
$ 132,397
|
|
$ 121,057
|
|
$
11,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
$
2,318
|
|
$
2,305
|
|
$
13
|
|
$
6,884
|
|
$
6,903
|
|
$
(19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net and comprehensive
income (loss)
|
$
19,440
|
|
$
(4,480)
|
|
$
23,920
|
|
$
29,350
|
|
$ (11,427)
|
|
$
40,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
5,736
|
|
$
1,765
|
|
$
3,971
|
|
$
11,727
|
|
$
7,967
|
|
$
3,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
$
26,377
|
|
$
(653)
|
|
$
27,030
|
|
$
45,384
|
|
$
(171)
|
|
$
45,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
$
6,091
|
|
$
1,265
|
|
$
4,826
|
|
$
27,612
|
|
$
9,255
|
|
$
18,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
|
|
|
|
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
302
|
|
268
|
|
34
|
|
847
|
|
739
|
|
108
|
|
|
(1) This is
a non-GAAP financial measure. See "Non-GAAP Financial
Measures" below.
|
|
(2) Cost of sales consists of the
following:
|
|
|
For the three months
ended
|
|
For the nine months
ended
|
|
September
30,
|
|
September
30,
|
|
(in
thousands)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Mining and processing
costs
|
$
31,850
|
|
$
30,419
|
|
$
89,751
|
|
$
79,735
|
|
Purchased coal
costs
|
4,877
|
|
7,047
|
|
12,800
|
|
17,931
|
|
Royalty
expense
|
2,577
|
|
1,927
|
|
7,513
|
|
4,882
|
|
Amortization
expense
|
4,216
|
|
3,048
|
|
10,134
|
|
9,198
|
|
Transportation costs
from preparation plant to customer
|
1,814
|
|
1,627
|
|
5,639
|
|
5,314
|
|
Idle mine
expense
|
1,276
|
|
314
|
|
4,093
|
|
1,111
|
|
Tolling
costs
|
-
|
|
168
|
|
-
|
|
1,231
|
|
Limestone
costs
|
222
|
|
256
|
|
701
|
|
486
|
|
Other costs
|
749
|
|
465
|
|
1,766
|
|
1,169
|
|
Total cost of
sales
|
$
47,581
|
|
$
45,271
|
|
$
132,397
|
|
$
121,057
|
|
For the three months
ended
|
|
For the nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
Variance
|
|
2023
|
|
2022
|
|
Variance
|
|
Realized price per ton
sold(1)
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$ 161.70
|
|
$ 158.39
|
|
$
3.31
|
|
$ 170.42
|
|
$ 159.70
|
|
$
10.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash production cost
per ton sold(1)(2)
|
|
NAPP – metallurgical
coal
|
$ 127.72
|
|
$ 136.95
|
|
$
9.23
|
|
$ 123.60
|
|
$ 131.22
|
|
$
7.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost per ton
sold(1)(3)
|
|
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$ 129.25
|
|
$ 141.86
|
|
$
12.61
|
|
$ 125.49
|
|
$ 136.48
|
|
$
10.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash margin per ton
sold(1)
|
|
|
|
|
|
NAPP – metallurgical
coal
|
$
32.45
|
|
$
16.53
|
|
$
15.92
|
|
$
44.93
|
|
$
23.22
|
|
$
21.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
(000's)
|
|
|
|
|
|
|
|
|
|
NAPP
|
$ 27,006
|
|
$
46
|
|
$
26,960
|
|
$ 47,476
|
|
$
3,173
|
|
$
44,303
|
|
Corporate
|
(629)
|
|
(699)
|
|
70
|
|
(2,092)
|
|
(3,344)
|
|
1,252
|
|
Total
|
$ 26,377
|
|
$
(653)
|
|
$
27,030
|
|
$ 45,384
|
|
$
(171)
|
|
$
45,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1) (000's)
|
|
|
|
|
|
NAPP
|
$
6,594
|
|
$
1,779
|
|
$
4,815
|
|
$ 29,190
|
|
$ 10,891
|
|
$
18,299
|
|
Corporate
|
(503)
|
|
(514)
|
|
11
|
|
(1,578)
|
|
(1,636)
|
|
58
|
|
Total
|
$
6,091
|
|
$
1,265
|
|
$
4,826
|
|
$ 27,612
|
|
$
9,255
|
|
$
18,357
|
|
(1) This is
a non-GAAP financial measure. See "Non-GAAP Financial
Measures" below.
|
|
(2) Cash
production cost per ton sold excludes purchased coal. This is
a non-GAAP financial measure. See "Non-GAAP Financial
Measures" below.
|
|
(3) Cash
cost per ton sold includes purchased coal. This is a non-GAAP
financial measure. See "Non-GAAP Financial Measures"
below.
|
Coal Pricing Trends and Outlook
Price levels opened the third quarter 2023 at $233.00/metric ton ("mt") delivered-to-the-port
("FOBT") for spot deliveries of Australian premium low volatile
metallurgical coal and closed the quarter at $333.00/mt FOBT. The quarterly average price for
the third quarter 2023 was $263.07/mt
FOBT compared to $242.92/mt FOBT in
the second quarter 2023 and traded in a range from a high of
$333.00/mt FOBT to a low of
$221.50/mt FOBT.
The price for spot deliveries of Australian premium low volatile
metallurgical coal opened the fourth quarter 2023 at $333.00/mt FOBT and was trading at $343.50/mt FOBT in the second half of October,
with a high price of $367.00/mt FOBT,
a low price of $333.00/mt FOBT and
averaged $355.11/mt FOBT during the
month. Forward curve pricing for the balance of 2023 is trading at
an average of $328.67/mt FOBT.
Through the first three weeks of October, fourth quarter 2023
hot-rolled steel coil prices increased in the United States by 8.6% and decreased in
Europe and China by 3.2% and 2.0%, respectively.
Increased steel production with limited metallurgical coal supply
response, as well as restocking, support increasing metallurgical
coal prices that remain above historical levels.
See "Risk Factors" in the Company's annual information form for
the year ended December 31, 2022 for
an additional discussion regarding certain factors that could
impact coal pricing trends and outlook, as well as the Company's
ongoing operations.
Fourth Quarter 2023 Update and Calendar Year 2024 Sales
Update
The Company's fourth quarter 2023 sales volumes are expected to
be lower than the third quarter of 2023 due to decreased production
from our deep mines in the previous quarter and decreased
availability of purchased coals. Metallurgical coal selling prices
are expected to be higher than the third quarter of 2023 due to
improved spot market pricing. Cash cost of sales are expected to be
higher than the previous quarter due to higher cost inventories to
start the quarter and seasonal impacts due to increased vacation
and holidays in the fourth quarter although mining conditions are
expected to be improved. Selling, general and administrative
expenses are expected to be slightly higher than the third quarter
2023. The main priorities of the Company are increasing efficient
production, reducing costs, and increasing our ability to
participate in the metallurgical coal spot market. We are committed
to improving the Company's balance sheet with minimized downside
financial risk but are also focused on organic growth opportunities
to complement our existing operations. The Company's capital
allocation and deployment strategy will be aligned with these
priorities and the Company's financial position.
For calendar year 2024, Corsa has to date committed sales of
nearly 700,000 tons at an FOB mine price of nearly $145/ton. The price per ton is the equivalent of
$257/mt FOBT for Australian premium
low volatile metallurgical coal.
Financial Statements and Management's Discussion and
Analysis
Refer to Corsa's unaudited condensed interim consolidated
financial statements for the three and nine months ended
September 30, 2023 and 2022 and related management's
discussion and analysis, filed under Corsa's profile on
www.sedarplus.ca, for details of the financial performance of Corsa
and the matters referred to in this news release.
Non-GAAP Financial Measures
Corsa uses certain non-GAAP financial measures to measure its
performance internally and to assist in business decision-making as
well as providing key performance information to senior
management. These measures are not recognized under
International Financial Reporting Standards ("GAAP"). Corsa
believes that, in addition to the conventional measures prepared in
accordance with GAAP, certain investors and other stakeholders also
use these non-GAAP financial measures to evaluate Corsa's operating
and financial performance; however, these non-GAAP financial
measures do not have any standardized meaning and therefore may not
be comparable to similar measures presented by other issuers.
Accordingly, these non-GAAP financial measures are intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with GAAP.
Management uses the following non-GAAP financial measures:
- EBITDA - earnings before deductions for interest, taxes,
depreciation and amortization;
- Adjusted EBITDA - EBITDA adjusted for change in estimate
of reclamation and water treatment provision for non-operating
properties, impairment and write-off of mineral properties and
advance royalties, gain (loss) on sale of assets and other costs,
stock-based compensation, non-cash finance expenses and other
non-cash adjustments. Adjusted EBITDA is used as a supplemental
financial measure by management and by external users of our
financial statements to assess our performance as compared to the
performance of other companies in the coal industry, without regard
to financing methods, historical cost basis or capital structure;
the ability of our assets to generate sufficient cash flow; and our
ability to incur and service debt and fund capital
expenditures;
- Realized price per ton sold - revenue from coal sales
less transportation costs from the mine site to the loading
terminal divided by tons of coal sold. Management evaluates our
operations based on the volume of coal we can safely produce or
purchase and sell in compliance with regulatory standards, and the
prices we receive for our coal. Our sales volume and sales prices
are largely dependent upon the terms of our contracts, for which
prices generally are set based on an index. We evaluate the price
we receive for our coal on an average realized price on an FOB mine
site per short ton basis;
- Cash production cost per ton sold - cash production
costs of sales excluding purchased coal costs, all included within
cost of sales, divided by tons of produced coal sold. Cash
production cost is based on cost of sales and includes items such
as manpower, royalties, fuel, and other similar production related
items, pursuant to IFRS, but relate directly to the costs incurred
to produce coal and sell it on an FOB mine site basis. Cash
production cost per ton sold is used as a supplemental financial
measure by management and by external users to assess our operating
performance as compared to the operating performance of other
companies in the coal industry. Purchased coal is excluded as the
purchased coal costs are based on market prices of coal purchased
and not the cost to produce the coal;
- Cash cost purchased coal per ton sold - purchased coal
costs divided by tons of purchased coal sold. Management uses this
measure to assess coal purchases against the market price at which
this coal will be sold;
- Cash cost per ton sold - cash production costs of sales,
included within cost of sales, divided by total tons sold.
Management uses cash cost per ton sold to assess our overall
financial performance on a per ton basis to include the Company's
production and purchased coal cost in total; and
- Cash margin per ton sold - calculated difference between
realized price per ton sold and cash cost per ton sold. Cash margin
per ton sold is used by management and external users to assess the
operating performance as compared to the operating performance of
other coal companies in the coal industry.
For a reconciliation of non-GAAP financial measures to GAAP
measures, see the tabular presentation at the end of this news
release.
Qualified Person
All scientific and technical information contained in this news
release has been reviewed and approved by David E. Yingling, Professional Engineer and the
Company's mining engineer, who is a qualified person within the
meaning of National Instrument 43-101 – Standards of
Disclosure for Mineral Projects.
Caution
Potential developments and market conditions discussed in this
news release are considered to be forward looking
information. Readers are cautioned that actual results may
vary from this forward-looking information. See
"Forward-Looking Statements" below.
Information about Corsa
Corsa is a coal mining company focused on the production and
sales of metallurgical coal, an essential ingredient in the
production of steel. Our core business is producing and selling
metallurgical coal to domestic and international steel and coke
producers in the Atlantic and Pacific basin markets.
Forward-Looking Statements
Certain information set forth in this press release contains
"forward-looking statements" and "forward-looking information"
(collectively, "forward-looking statements") under applicable
securities laws. Except for statements of historical fact, certain
information contained herein including, but not limited to,
statements relating to improved profitability, adjusted EBITDA and
financial results, the ability to manage the Company going forward,
the expected price volatility of the metallurgical coal market, the
future demand for steel and its production, and the availability of
its supply, changes to sales margins and expected profitability,
the expected sales volumes and cash costs of sales of the Company
in the fourth quarter of 2023 constitute forward-looking statements
which include management's assessment of future plans and
operations and are based on current internal expectations,
assumptions and beliefs, which may prove to be incorrect. Some of
the forward-looking statements may be identified by words such as
"will", "estimates", "expects" "anticipates", "believes",
"projects", "plans", "capacity", "hope", "forecast", "anticipate",
"could" and similar expressions. These statements are not
guarantees of future performance and undue reliance should not be
placed on them. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties. These risks and
uncertainties include, but are not limited to: changes in market
conditions, governmental or regulatory developments, the operating
status and capabilities of our customers and competitors; various
events which could disrupt operations and/or the transportation of
coal products, including the geological conditions at the Company's
mines, global conflicts, labor stoppages, the outbreak of disease
and severe weather conditions; and management's ability to
anticipate and manage the foregoing factors and risks. There
can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. The reader is
cautioned not to place undue reliance on forward-looking
statements. Corsa does not undertake to update any of the
forward-looking statements contained in this press release unless
required by law. The statements as to Corsa's capacity to produce
coal are no assurance that it will achieve these levels of
production or that it will be able to achieve these sales
levels.
The TSX Venture Exchange has in no way passed on the
merits of this news release. Neither the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
Non-GAAP Financial Measures Reconciliation
EBITDA and Adjusted EBITDA for the three months ended
September 30, 2023 and 2022
|
For the three months
ended
|
|
For the three months
ended
|
|
September 30,
2023
|
|
September 30,
2022
|
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
|
Net and comprehensive
income (loss)
|
$ 21,959
|
|
$ (2,519)
|
|
$ 19,440
|
|
$
(3,371)
|
|
$ (1,109)
|
|
$
(4,480)
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
4,216
|
|
-
|
|
4,216
|
|
3,048
|
|
-
|
|
3,048
|
|
Interest
expense
|
831
|
|
541
|
|
1,372
|
|
369
|
|
410
|
|
779
|
|
Income tax
expense
|
-
|
|
1,349
|
|
1,349
|
|
-
|
|
-
|
|
-
|
|
EBITDA
|
27,006
|
|
(629)
|
|
26,377
|
|
46
|
|
(699)
|
|
(653)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
PennDOT Settlement
(a)
|
(23,333)
|
|
-
|
|
(23,333)
|
|
-
|
|
-
|
|
-
|
|
Stock-based
compensation (b)
|
-
|
|
60
|
|
60
|
|
-
|
|
11
|
|
11
|
|
Net finance (income)
expense, excluding interest expense (c)
|
2,257
|
|
38
|
|
2,295
|
|
1,967
|
|
74
|
|
2,041
|
|
(Gain) loss on disposal
of assets (d)
|
(191)
|
|
-
|
|
(191)
|
|
13
|
|
-
|
|
13
|
|
Other costs
(e)
|
855
|
|
28
|
|
883
|
|
(247)
|
|
100
|
|
(147)
|
|
Adjusted
EBITDA
|
$
6,594
|
|
$
(503)
|
|
$
6,091
|
|
$
1,779
|
|
$
(514)
|
|
$
1,265
|
|
(a)
|
Reflects the amount
included in other income and expense related to the legal
settlement with PennDOT.
|
|
(b)
|
Reflects the non-cash
expense related to the vesting of stock options.
|
|
(c)
|
Components of finance
expense and income excluding interest expense.
|
|
(d)
|
Reflects the amounts
included in other income and expense related to the disposal of
assets not utilized in the Company's mining operations.
|
|
(e)
|
Reflects various
adjustments, none of which were individually material, related to
adjusting the Company's workers' compensation liability, costs
incurred for the Company's internal investigation of the sales
agent matter and legal settlements.
|
EBITDA and Adjusted EBITDA for the nine months ended
September 30, 2023 and 2022
|
For the nine months
ended
|
|
For the nine months
ended
|
|
September 30,
2023
|
|
September 30,
2022
|
|
(in
thousands)
|
NAPP
|
|
Corp.
|
|
Total
|
|
NAPP
|
|
Corp.
|
|
Total
|
|
Net and comprehensive
income (loss)
|
$ 34,846
|
|
$ (5,496)
|
|
$ 29,350
|
|
$
(7,020)
|
|
$ (4,407)
|
|
$ (11,427)
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
expense
|
10,134
|
|
-
|
|
10,134
|
|
9,198
|
|
-
|
|
9,198
|
|
Interest
expense
|
2,496
|
|
1,562
|
|
4,058
|
|
995
|
|
1,063
|
|
2,058
|
|
Income tax
expense
|
-
|
|
1,842
|
|
1,842
|
|
-
|
|
-
|
|
-
|
|
EBITDA
|
47,476
|
|
(2,092)
|
|
45,384
|
|
3,173
|
|
(3,344)
|
|
(171)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
PennDOT Settlement
(a)
|
(23,333)
|
|
-
|
|
(23,333)
|
|
-
|
|
-
|
|
-
|
|
Restructuring charges
(b)
|
-
|
|
-
|
|
-
|
|
-
|
|
886
|
|
886
|
|
Stock-based
compensation (c)
|
-
|
|
191
|
|
191
|
|
-
|
|
12
|
|
12
|
|
Net finance (income)
expense, excluding interest expense (d)
|
3,780
|
|
145
|
|
3,925
|
|
7,507
|
|
238
|
|
7,745
|
|
(Gain) loss on disposal
of assets (e)
|
(180)
|
|
-
|
|
(180)
|
|
148
|
|
-
|
|
148
|
|
Other costs
(f)
|
1,447
|
|
178
|
|
1,625
|
|
63
|
|
572
|
|
635
|
|
Adjusted
EBITDA
|
$ 29,190
|
|
$ (1,578)
|
|
$ 27,612
|
|
$
10,891
|
|
$ (1,636)
|
|
$
9,255
|
|
(a)
|
Reflects the amount
included in other income and expense related to the legal
settlement with PennDOT.
|
|
(b)
|
Reflects the separation
costs associated with the Company's previous President and Chief
Executive Officer and Chief Operating Officer.
|
|
(c)
|
Reflects the non-cash
expense related to the vesting of stock options.
|
|
(d)
|
Components of finance
expense and income excluding interest expense.
|
|
(e)
|
Reflects the amounts
included in other income and expense related to the disposal of
assets not utilized in the Company's mining operations.
|
|
(f)
|
Reflects various
adjustments, none of which were individually material, related to
adjusting the Company's workers' compensation liability, costs
incurred for the Company's internal investigation of the sales
agent matter and legal settlements.
|
Realized price per ton sold for the three months ended
September 30, 2023 and 2022
|
For the three months
ended
|
|
For the three months
ended
|
|
September 30,
2023
|
|
September 30,
2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Revenue
|
$ 50,780
|
|
$
278
|
|
$ 51,058
|
|
$
44,524
|
|
$
1,414
|
|
$
45,938
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
-
|
|
-
|
|
-
|
|
(244)
|
|
-
|
|
(244)
|
|
Transportation costs
from preparation plant to customer
|
(1,814)
|
|
-
|
|
(1,814)
|
|
(1,619)
|
|
(8)
|
|
(1,627)
|
|
Limestone
revenue
|
(133)
|
|
-
|
|
(133)
|
|
(213)
|
|
-
|
|
(213)
|
|
Net coal sales (at
preparation plant)
|
$ 48,833
|
|
$
278
|
|
$ 49,111
|
|
$
42,448
|
|
$
1,406
|
|
$
43,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
302
|
|
3
|
|
305
|
|
268
|
|
14
|
|
282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton
sold (at preparation plant)
|
$ 161.70
|
|
$
92.67
|
|
$ 161.02
|
|
$
158.39
|
|
$ 100.43
|
|
$
155.51
|
Realized price per ton sold for the nine months ended
September 30, 2023 and 2022
|
For the nine months
ended
|
|
For the nine months
ended
|
|
September 30,
2023
|
|
September 30,
2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Revenue
|
$
150,375
|
|
$
3,937
|
|
$
154,312
|
|
$ 125,292
|
|
$
1,745
|
|
$ 127,037
|
|
Add
(Deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Tolling
revenue
|
-
|
|
-
|
|
-
|
|
(1,481)
|
|
-
|
|
(1,481)
|
|
Transportation costs
from preparation plant to customer
|
(5,639)
|
|
-
|
|
(5,639)
|
|
(5,292)
|
|
(22)
|
|
(5,314)
|
|
Limestone
revenue
|
(388)
|
|
-
|
|
(388)
|
|
(504)
|
|
-
|
|
(504)
|
|
Net coal sales (at
preparation plant)
|
$
144,348
|
|
$
3,937
|
|
$
148,285
|
|
$ 118,015
|
|
$
1,723
|
|
$ 119,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal sold -
tons
|
847
|
|
40
|
|
887
|
|
739
|
|
17
|
|
756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per ton
sold (at preparation plant)
|
$ 170.42
|
|
$
98.43
|
|
$ 167.18
|
|
$
159.70
|
|
$ 101.35
|
|
$
158.38
|
Cash cost per ton sold, cash production cost per ton sold,
and cash cost per purchased coal per ton sold for the three months
ended September 30, 2023 and
2022
|
For the three months
ended
|
|
For the three months
ended
|
|
September 30,
2023
|
|
September 30,
2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining and processing
costs
|
$ 31,779
|
|
$
71
|
|
$ 31,850
|
|
$
29,571
|
|
$
848
|
|
$
30,419
|
|
Purchased coal
costs
|
4,679
|
|
198
|
|
4,877
|
|
6,521
|
|
526
|
|
7,047
|
|
Royalty
expense
|
2,577
|
|
-
|
|
2,577
|
|
1,927
|
|
-
|
|
1,927
|
|
Total cash costs of
tons sold
|
$ 39,035
|
|
$
269
|
|
$ 39,304
|
|
$
38,019
|
|
$
1,374
|
|
$
39,393
|
|
Total tons
sold
|
302
|
|
3
|
|
305
|
|
268
|
|
14
|
|
282
|
|
Cash cost per ton sold
(at preparation plant)
|
$ 129.25
|
|
$
89.67
|
|
$ 128.87
|
|
$
141.86
|
|
$
98.14
|
|
$
139.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$ 39,035
|
|
$
269
|
|
$ 39,304
|
|
$
38,019
|
|
$
1,374
|
|
$
39,393
|
|
Less: purchased
coal
|
(4,679)
|
|
-
|
|
(4,679)
|
|
(6,521)
|
|
-
|
|
(6,521)
|
|
Cash cost of produced
coal sold
|
$ 34,356
|
|
$
269
|
|
$ 34,625
|
|
$
31,498
|
|
$
1,374
|
|
$
32,872
|
|
Tons sold -
produced
|
269
|
|
3
|
|
272
|
|
230
|
|
14
|
|
244
|
|
Cash production cost
per ton sold (at preparation plant)
|
$ 127.72
|
|
$
89.67
|
|
$ 127.30
|
|
$
136.95
|
|
$
98.14
|
|
$
134.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$
4,679
|
|
$
-
|
|
$
4,679
|
|
$
6,521
|
|
$
-
|
|
$
6,521
|
|
Tons sold - purchased
coal
|
33
|
|
-
|
|
33
|
|
38
|
|
-
|
|
38
|
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$ 141.79
|
|
$
-
|
|
$ 141.79
|
|
$
171.61
|
|
$
-
|
|
$
171.61
|
Cash cost per ton sold, cash production cost per ton sold,
and cash cost per purchased coal per ton sold for the nine months
ended September 30, 2023 and
2022
|
For the nine months
ended
|
|
For the nine months
ended
|
|
September 30,
2023
|
|
September 30,
2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
(in thousands except
per ton amounts)
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining and processing
costs
|
$ 88,769
|
|
$
982
|
|
$ 89,751
|
|
$
78,576
|
|
$
1,159
|
|
$
79,735
|
|
Purchased coal
costs
|
10,005
|
|
2,795
|
|
12,800
|
|
17,399
|
|
532
|
|
17,931
|
|
Royalty
expense
|
7,513
|
|
-
|
|
7,513
|
|
4,882
|
|
-
|
|
4,882
|
|
Total cash costs of
tons sold
|
$
106,287
|
|
$
3,777
|
|
$
110,064
|
|
$ 100,857
|
|
$
1,691
|
|
$ 102,548
|
|
Total tons
sold
|
847
|
|
40
|
|
887
|
|
739
|
|
17
|
|
756
|
|
Cash cost per ton sold
(at preparation plant)
|
$ 125.49
|
|
$
94.43
|
|
$ 124.09
|
|
$
136.48
|
|
$
99.47
|
|
$
135.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs of
tons sold
|
$
106,287
|
|
$
3,777
|
|
$
110,064
|
|
$ 100,857
|
|
$
1,691
|
|
$ 102,548
|
|
Less: purchased
coal
|
(10,005)
|
|
-
|
|
(10,005)
|
|
(17,399)
|
|
-
|
|
(17,399)
|
|
Cash cost of produced
coal sold
|
$ 96,282
|
|
$
3,777
|
|
$
100,059
|
|
$
83,458
|
|
$
1,691
|
|
$
85,149
|
|
Tons sold -
produced
|
779
|
|
40
|
|
819
|
|
636
|
|
17
|
|
653
|
|
Cash production cost
per ton sold (at preparation plant)
|
$ 123.60
|
|
$
94.43
|
|
$ 122.17
|
|
$
131.22
|
|
$
99.47
|
|
$
130.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased
coal
|
$ 10,005
|
|
$
-
|
|
$ 10,005
|
|
$
17,399
|
|
$
-
|
|
$
17,399
|
|
Tons sold - purchased
coal
|
68
|
|
-
|
|
68
|
|
103
|
|
-
|
|
103
|
|
Cash cost purchased
coal per ton sold (at preparation plant)
|
$ 147.13
|
|
$
-
|
|
$ 147.13
|
|
$
168.92
|
|
$
-
|
|
$
168.92
|
Cash margin per ton sold for the three months ended
September 30, 2023 and 2022
|
For the three months
ended
|
|
For the three months
ended
|
|
September 30,
2023
|
|
September 30,
2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Realized price per ton
sold (at preparation plant)
|
$ 161.70
|
|
$
92.67
|
|
$ 161.02
|
|
$
158.39
|
|
$ 100.43
|
|
$
155.51
|
|
Cash cost per ton sold
(at preparation plant)
|
$ 129.25
|
|
$
89.67
|
|
$ 128.87
|
|
$
141.86
|
|
$
98.14
|
|
$
139.69
|
|
Cash margin per ton
sold
|
$
32.45
|
|
$
3.00
|
|
$
32.15
|
|
$
16.53
|
|
$
2.29
|
|
$
15.82
|
Cash margin per ton sold for the nine months ended
September 30, 2023 and 2022
|
For the nine months
ended
|
|
For the nine months
ended
|
|
September 30,
2023
|
|
September 30,
2022
|
|
NAPP
|
|
NAPP
|
|
|
|
NAPP
|
|
NAPP
|
|
|
|
Met
|
|
Thermal
|
|
Total
|
|
Met
|
|
Thermal
|
|
Total
|
|
Realized price per ton
sold (at preparation plant)
|
$ 170.42
|
|
$
98.43
|
|
$ 167.18
|
|
$
159.70
|
|
$ 101.35
|
|
$
158.38
|
|
Cash cost per ton sold
(at preparation plant)
|
$ 125.49
|
|
$
94.43
|
|
$ 124.09
|
|
$
136.48
|
|
$
99.47
|
|
$
135.65
|
|
Cash margin per ton
sold
|
$
44.93
|
|
$
4.00
|
|
$
43.09
|
|
$
23.22
|
|
$
1.88
|
|
$
22.73
|
SOURCE Corsa Coal Corp.
